The shares of Murugappa Group firm CG Energy surged virtually 20% in commerce to INR 469 on Wednesday following announcement of its plans to get into semiconductor meeting.
Mumbai-based CG Energy and Industrial Options, which was acquired by Tube Investments in 2020, has filed an software to arrange an outsourced semiconductor meeting and check facility (OSAT) in India with an funding of about USD 791 million (INR 6,600 crore). unfold over 5 years, the corporate stated on Wednesday.
In a disclosure to the exchanges the corporate stated that it has sought the approvals of the ministry of electronics and data know-how (MeiTY) to arrange a OSAT facility and can also be looking for subsidies for the challenge.
“The estimated funding on the challenge over a interval of 5 years is USD 791 million and the identical is predicted to be funded by a mix of subsidy, JV Companions fairness contribution and debt, as required,” the corporate stated.
The challenge pertains to organising of semiconductor meeting, testing, marking and packaging (ATMP)/ outsourced semiconductor meeting and check (OSAT) models in India. Topic to approvals, the corporate additionally proposes to implement the identical as a three way partnership in partnership with know-how suppliers, that are underneath dialogue.
Murugappa Group declined to touch upon TOI’s queries round particulars of the challenge, location of the ability or causes for stepping into a brand new non-core phase. The engineering conglomerate at the moment offers in merchandise, options and providers for energy, industrial and logistics sectors.
In 2020, Murugappa Group’s Tube Investments (TII) acquired a controlling stake in debt-ridden CG Energy, and the takeover adopted lenders of CG Energy agreeing to a one-time mortgage restructuring. As of September, Tube Investments
holds 58% shareholding.
